The number of business bankruptcies in Maryland declined for the second consecutive year in 2011 after increases the three previous years, according to federal bankruptcy court figures.

Some 630 companies filed for bankruptcy in Maryland courts in 2011, down 22 percent from 2010. Last year’s level was about the same as in 2008, but still well above the 352 filings in 2007.

Nationally, business bankruptcies fell a bit less last year than in Maryland, falling 19 percent, according to Alexandria, Va., research group American Bankruptcy Institute and data firm Epiq Systems.

Economists say the improved economy and more businesses being able to borrow more money or delay payments are factors for the decline in companies filing for bankruptcy.

Personal bankruptcy filings also declined last year. One reason for that is mortgage lenders did not foreclose as quickly in 2011 as in previous years, said Laura J. Margulies, managing partner of Laura Margulies & Associates, a law firm with offices in Rockville and Greenbelt that handles small-business and consumer bankruptcy cases. She is a frequent lecturer on bankruptcy topics.

“It is not that people are all making their payments — it is that they are now staying longer in their houses without making payments,” Margulies said. “Banks have been plagued by multiple problems, and until they fix these problems, they cannot foreclose.”

Fewer Maryland businesses are filing for Chapter 7, which shuts down the company. Last year, about 450 businesses took the liquidation route, down 23 percent from 2010.

The Chapter 7 filings last year include Raptor Detection, a Columbia company that developed sensors and other products to detect tiny amounts of dangerous substances. The business listed liabilities totaling $89.5 million and no assets.

The pace of Chapter 11 reorganizations also fell by 13 percent last year in Maryland.

Total bankruptcy filings by both individuals and businesses fell by 14 percent last year in Maryland to about 25,000, according to court figures. That was larger than the 12 percent national decline.

kshay@gazette.net